WSJ: Mortgage lenders are trying to arrange smoother departures for distressed homeowners who can’t be saved by loan modifications [my translation: "can't be sold 20% more debt so the taxpayers insure the banks gambling losses"] — and discourage them from trashing the homes on their way out.I think it was May 2007 when I suggested on Market Watch that mortgage lenders take a page out of the Great Depression Playbook and let foreclosees stay in the house for modest rent payments, after a peaceful transfer of ownership to the bank. It took ten thousand bank closures to figure out something so simple.
The CitiMortgage pilot program provides incentives for more borrowers to use a procedure known as a “deed in lieu of foreclosure,” in which the borrower voluntarily transfers ownership of the home to the lender, which then cancels the mortgage debt.
There is nothing new under the Sun.
The fact that today's "highly educated" bankers don't know or understand anything about the history and lessons of their own profession, is also old news.
Overall, we are the most educated, and as a result, likely the dumbest generation of humans ever to roam the planet.